Platform news

Audit Firm Grant Thorton launches blockchain solution

Financial dealings between business entities within a company, commonly known as intercompany transactions, account for 30% to 40% of the global economy, equaling almost $40 trillion annually. In response, Grant Thornton LLP has launched inter.x, a unique offering that uses blockchain technologies to provide transparency for intercompany transactions.
The inter.x solution delivers real-time data-analytics dashboards that monitor intercompany transactions, including transfer-pricing compliance and treasury management. The offering can assist companies as they contend with the disruption caused by the coronavirus pandemic. For example, inter.x provides deep insights into a rapidly changing supply chain, which makes the offering a useful tool to speed cashflow and increase liquidity.
“Grant Thornton designed inter.x to provide a simple user experience that can red-flag missed opportunities tied to intercompany transactions and identify instances when transactions may have fallen short of company policies,” said Jamie Fowler, chief transformation officer at Grant Thornton. “The inter.x solution has a simple value proposition: Companies bring their underlying data, while inter.x brings the automation and transparency.”
Another key benefit of the inter.x offering is that it uses blockchain technology to permanently store the inputs, outputs, and actual run-time calculations of a transaction – a capability that can help companies improve transfer-pricing compliance.  According to Steven Wrappe, national technical leader of Transfer Pricing in Grant Thornton’s Washington National Tax Office: “The inter.x offering helps users shift their compliance concerns; they no longer need to focus on applying policies, and instead can focus on whether those policies make sense.”
Reducing errors, bureaucracy, and fraudIntercompany transactions are the fifth most common cause of corporate financial restatements. They are frequently the source of underlying fraud, manual errors, unnecessary bureaucracy and wasted time.
Simple interface and ‘immutable’ dataThe inter.x solution integrates far-flung ERP systems, aggregating data in real time, and then creating an end-to-end workflow that behaves as a single transaction. This allows companies to recognize and make immediate decisions rather than waiting until a monthly or annual accounting cycle.
More importantly, inter.x users can track and account for intercompany transactions with an audit trail that is ‘immutable,’ meaning the integrity of the audit data persists over time. The result is a permanent and unforgeable audit trail for consistent transaction information.
This is not the first time Grant Thorton uses blockchain, in 2019, MLG Blockchain, a global venture creation and advisory firm headquartered in Toronto and New York, and Grant Thornton Malta, announced a strategic collaboration to streamline the process for new projects to access liquidity and capital through the new Initial Exchange Offering (IEO) structure in a compliant way, including the offering of Virtual Financial Assets (VFA) in accordance with the innovative Maltese regulatory framework.



News Desk

Unlock News Desk, is a group of Blockchain and Crypto enthusiastic young people, working to keep Unlock readers up to date with the industry news. Connect with the team via email: info(@)

Related Articles

Back to top button